Consumer Behavior Ch.8

Which of the following statements is true of judgments?

They do not require a decision.

In a _____, the brand that has the best overall score, attribute goodness times importance summed across all of the brand's attributes, is the one consumers choose.

compensatory model

The initial reference point or anchor in the decision process is referred to as _____.

decision framing

Judging how probable it is that something will occur is referred to as a(n) _____.

estimation of likelihood

The elimination-by-aspects model is similar to the lexicographic model except that it:

incorporates the notion of an acceptable cutoff.

According to prospect theory, _____.

losses loom larger than gains for consumers even when the outcomes of decision models are of the same magnitude

In the context of time pressure, _____ want to improve their current well-being and prefer products that help them to do so.

present-oriented consumers

Which of the following statements is true of prospect theory?

Consumers have strong negative reactions to price increases.

Decision-making is judging how likely it is that something will occur.

False

Which of the following is one of the drawbacks of compensatory models?

They require a significant amount of effort.

When brands in consumers' consideration set are similar in attractiveness, they must put more effort into making a decision and will more likely use a(n) _____.

compensatory model

Imagery plays a key role in _____.

emotional decision-making

When the outcome of a decision will be realized far in the future, consumers may consider the rational aspects of the decision to be more important than the hedonic aspects of the decision.

False

A _____ is best when a customer wishes to rule out unsuitable options as soon as possible.

conjunctive model

Judgment is a(n) _____ the decision-making process.

critical input into

_____ is the process by which consumers combine items of information about attributes to reach a decision.

Cognitive decision-making model

Which of the following statements is true of decision framing?

Consumers are more willing to take risks with products when a choice is framed as avoiding a loss than one framed as acquiring a gain.

In the context of making decisions in a group, which of the following statements is true of self-presentation?

Consumers use unique choices to express their individuality.

Maureen hates shopping for clothes and is easily confused if provided with plenty of choices. She has an upcoming office party for which she needs to purchase a dress. The night before the party, she reluctantly goes to a nearby mall to buy a dress that would be apt for the occasion. Which of the following consumer tendencies is illustrated by Maureen in this scenario?

Decision delay

Adding information actually makes imagery processing complicated because more information makes it difficult for consumers to form an accurate image.

False

In the context of consideration sets, the attraction effect occurs because adding superior brands to a set increases the attractiveness of a dominant brand, making decisions easier for consumers.

False

In the context of decisions based on gains and losses, consumers have a much stronger reaction to price decreases than to price increases.

False

Money received under negative circumstances is more likely to be spent on a hedonic purchase than on a utilitarian purchase.

False

Present-oriented consumers want to develop themselves and select life-enriching vacations and books.

False

Promotion-focused consumers, whose goal is to maximize gains and positive outcomes, will put more emphasis on the effectiveness of a product and put less emphasis on whether they think they have the skills and capacity to use the product.

False

Repetition of a brand name and messages in marketing communications prevents the brand name from being retained in the consumer's memory.

False

When consumers' motivation, ability, and opportunity (MAO) to process information relevant to a decision are low, consumers put a lot of effort into making these decisions.

False

When the option to see pricing information is presented with the higher price first, consumers are more likely to choose the lower priced option.

False

Which of the following statements is true of a lexicographic model?

If one attribute of an option dominates, the consumer selects that option.

In the context of noncomparable decisions, which of the following statements is true of alternative-based strategy?

It develops an overall evaluation of each option.

Which of the following strategies can help a company get its brand into the consumer's consideration set?

Maximizing the attraction effect resulting in a more positive evaluation of the brand

In the process of deciding which criteria are relevant to a choice, which of the following statements is true of consumers' goals during a decision process?

Prevention-focused consumers, who are more risk-averse, emphasize a product's efficacy.

In the context of decisions based on gains and losses, which of the following statements is true of prevention-focused consumers?

They tend to preserve the status quo.

Bud wants to buy a car, but is not willing to consider any car that gets a mileage of less than 37 miles per gallon. This scenario illustrates that Bud has set a cutoff level in his mind.

True

Consumers using a disjunctive model set up acceptable cutoffs to find options that are good.

True

The _____ is a compensatory model in which brands are compared by attribute, two brands at a time.

additive difference model

Barbara loves to visit the mountains during this time in the summer. It is December and she has already started planning ahead for summer. In this scenario, Barbara's prediction of her summer holidays is an example of _____.

affective forecasting

Consumers' predictions of what they will feel in the future is referred to as _____.

affective forecasting

Danny is interested in purchasing a new car. He sees an ad of a new car model manufactured by Jadeon, which is Danny's favorite car company. Danny's interest in the new model increases when he finds out through the ad that this model is affordable and also has a high engine power. In this scenario, Danny's method of making a judgment about the new car model is an example of _____.

an anchoring and adjustment process

In the context of making judgments about likelihood and goodness and badness, starting with an initial evaluation and adjusting it with additional information is referred to as _____.

an anchoring and adjustment process

A consideration set, which contains options that consumers want to choose among, consists of a leading brand's perfume, handbag, and designer footwear. To make this brand look even better, marketers decide to add accessories from an inferior brand to the consideration set. This act by the marketers is an instance of the _____.

attraction effect

Price comparison shopping in which consumers compare each brand on price and select the one with the desired price is an example of _____.

attribute processing

Linda wants to purchase a new smartphone and assessing one brand at a time. She first collects information about Kiarane smartphones, which are marketed as top of the line. She decides to make a judgment on Kiarane smartphones before moving on to the next brand. This act of Linda is an example of _____.

brand processing

Nancy plans to purchase a new car. She has planned a holiday and hence wants to buy the car at the earliest. To make a quick decision, she first dismisses all the cars that do not have a rear-view camera. In this scenario, Nancy's attitude toward the car purchase exemplifies the _____.

conjunctive model

When deciding which brands to consider, a(n) _____ refers to those options that consumers want to choose among.

consideration set

For each attribute, the point at which a brand is rejected with a noncompensatory model is referred to as the _____.

cutoff level

Making a selection among options or courses of action is referred to as _____.

decision-making

In the _____, the consumer bases evaluations on several of the most important attributes rather than on all of them.

disjunctive model

Clarke is moving out of town and wishes to sell his Legone motorbike. Patrick, Clarke's friend, is ready to purchase the motorbike. However, Clarke wants to charge a price that is much higher than Patrick is willing to pay. This scenario is an example of the _____.

endowment effect

When asked to set a price for an item to be exchanged, sellers typically ask for a much higher price than buyers are willing to pay. This is referred to as the _____.

endowment effect

When consumers tend to exhibit _____, they often find moderately priced options more attractive than options that are either very expensive or very inexpensive.

extremeness aversion

Nathan goes to a store to purchase laundry detergents. When Nathan looks around to make a brand selection, he realizes that he loves the brands Deit and Dolen, hates the brands Duss and Tone Out, and does not have much of an opinion about the brand Little Alls. In this scenario, Little Alls is clearly in Nathan's _____.

inert set

Rene wants to purchase a laptop. She compares the laptops of Finneco and Twissare, two of the leading laptop brands in the market, to decide which of the two brands would suit her requirements perfectly. She finds that both the laptop brands tie on the most important feature "processing speed." She then moves on to compare the next feature "graphics" and selects Finneco because it is ranked higher. This scenario exemplifies the use of the _____ by Rene to make the selection.

lexicographic model

With the _____, consumers order the attributes in terms of importance and compare the options one attribute at a time, starting with the most important attribute.

lexicographic model

Len wants to purchase a car and visits a car showroom to have a look at all the new models. In the showroom, Len assesses the cars' key features, such as the quality, comfort, and performance of the engines. In this scenario, he is _____.

making judgments

Using a conjunctive model, consumers set up:

minimum cutoffs for each attribute that represent the absolute lowest value they are willing to accept.

Linda and her friend, Cindy, meet to plan an exciting Saturday evening. Linda wants to go for a movie, whereas Cindy wants to go to a basketball game. However, the movie and the game begin at the same time. Hence, they need to decide on one of the activities. In this scenario, making the choice between the movie and the game exemplifies a situation of _____.

noncomparable decisions

In a(n) _____, a negative rating on a key attribute leads to immediate rejection of the brand from the consideration set.

noncompensatory model

The difference between a conjunctive model and a disjunctive model is that a disjunctive model puts the weight on _____.

positive information

Georgia wishes to rent a convertible car during her upcoming vacation in Hawaii. She imagines the view of the ocean, the smell of tropical flowers, and the wind in her hair. However, when reaches Hawaii, it is raining heavily and her rental car has engine problems. Georgia's expectation before she started her trip is an instance of a(n) _____.

self-positivity bias